Lucid Motors makes (is) the best EV on the planet and MVIS offers the best LiDAR based ADAS solution. Its just the matter of time these two find each other in a courtship... or perhaps they are engaged already and ready to deliver.
Where Lucid Motors be in 3 to 5 Years?
There is a huge demand for super performance luxury EVs from the rich and famous of the world... and Lucid Air Grand Touring Performance (LAGTP) caters to that.
There are over 200,000 Ultra High Net Worth (UHNW) households in the world... with 50 million plus net worth. This represents over 500,000 LAGTP cars market worth over 100 billion (500,000x200,000 = 100,000,000,000).
LAGTP is the Rolls Royce of EVs and caters to potentially 100 billion dollar market at huge profit. If you can make $100,000 selling one LAGTP EV for $200,000... then why do you want to clog your production lines to produce 5 low priced $50,000 EVs at low margins to make the same money. Lucid motors makes the same profit making one Grand Touring Performance as Tesla does making 5 model (whatever) EVs...
Lucid motors has delivered all 520 of the Lucid Dreams edition and is now making deliveries of Lucid Grand Touring model. In 3rd Qtr of 2022, Lucid produced 2,282 cars and delivered 1,400 to customers— almost $250 million in 3rd Qtr 2022 revenues. At this rate, Lucid has generated over $608 million dollars in revenue for full year 2022.
In the 1st Qtr of 2023, Lucid produced 2,314 cars and delivered 1,406 to customers... almost $150 million in 1st Qtr 2023 revenue. Lucid motors expects to produce its next model, a large and sporty electric SUV called Gravity, towards the end of 2023.
Company just announced its highest performance luxury model Grand Touring Performance for delivery starting June 2022. The Lucid Air Grand Touring Performance is base-priced at $179,000, while the Lucid Air Grand Touring starts at $139,000. Deliveries of the Air Grand Touring Performance begin in June and those of the Air Grand Touring are in progress.
The Lucid group is betting heavily on the Lucid Air Grand Touring Performance, which can deliver 1,050 horsepower and a maximum speed of 168 mph. It can compete with the best supercars, with a 0-to-60 mph shot in less than 2.6 seconds. And its range is as much as 446 miles on a single charge. According to Lucid Motors CEO, there is huge demand for this supercar luxury model... over 100 billion dollars worth.
Now, consumers have a choice of four variants of the Air -- Lucid Air Pure, Air Touring, Air Grand Touring and Air Grand Touring Performance.
"This unparalleled fusion of strengths is the product of Lucid’s ground-breaking in-house technology, like our miniaturized drive units with unrivaled power density and race-proven 900V+ battery and power architecture," Peter Rawlinson, who is Lucid's CEO and chief technology officer, said in a statement. This means owners will be able to charge the car with 300 miles of range in just 21 minutes.
The company has a powerful and deep-pocketed shareholder, Public Investment Fund (PIF), the sovereign wealth fund of Saudi Arabia. The fund's financial power has increased as crude-oil prices have soared -- Saudi Arabia is the world's largest oil exporter. Musk in 2018 had approached PIF to consider taking Tesla private. But with PIF in its corner, Lucid can dream of dethroning Tesla.
Lucid’s supply chain issues were, so it seems, just limited to consumer items like carpeting and trims. Cost of commodities is up but not as much as we had expected . Nickel prices have dropped dramatically to $22,800 per ton, down from over $100,000 per ton few months ago. Prices of Nickel are expected to be around $16,000 per ton by the end of the year.
How many Lucid EVs can be delivered remains the question.
In summary, LCID is a strong buy at current price of $12 dollars, with potential of becoming a fifty bagger at $600 dollar stock in next 3 to 5 years.
Lucid Group and MicroVision are my two favorite stocks to hold right now, because Lucid Motor produces the best overall electric vehicle in the world and MicroVision produces the best LiDAR based ADAS solution.
In fact, I truly believe Lucid is like Tesla 2.0 all over again.
Now everybody is wondering where will Lucid Motors stock be in 3 to 5 years from now. Let us take a long term view of the company and see if revenue & earnings will grow positively over time.
In 2025, the entire EV industry will be filled with tons of competition from companies such as Tesla, Rivian, Ford, Toyota, Fisker, and many other smaller EV companies. In 2025, Lucid Motors could generate over $70 billion in annual revenue with LCID stock trading well over $ 600 per share.
Lucid Motors Leads the Pack
The Lucid Air is arguably the best EV on the planet right now. It has the longest range out of any luxury EV sedan with 500 miles charging range and starts at a $77,000 price range.
There is no other EV on the planet that comes close to the Lucid Air in terms of quality and luxury by a long shot.
Back in the early 2000’s, Apple released the Apple iPhone and became the most valuable company in the world by producing the highest quality electronics for consumers. I’m hoping Lucid will benefit from the same brand recognition by producing the best EV on the planet.
Three to Five Year Revenue Growth for Lucid Motors Will Be Insane
Now let’s take a look at the numbers to determine some revenue growth. In Q2 2022, Lucid Motors generated $97.3 million in revenue from 679 deliveries. That’s an average revenue of $143,000 per vehicle. Management expects to deliver 7,000 EVs in 2022.
Now let’s assume the company can reach 500,000 EVs produced by 2025 because Lucid Motors CEO said the company will hit 500k annual EVs produced by 2025. About 500k deliveries would equal $71.5 billion in annual revenue alone (not including revenues from battery and power train sales).
It doesn’t make sense to use LCID’s current Price to Sales ratio, because the company is still growing. TSLA stock trades at a 15 P/S ratio, which is a good benchmark for a more mature futuristic company.
If LCID follows in the same footsteps as Tesla then Lucid Motors would have a market cap of $1 trillion by 2027. Assuming no further dilution, LCID stock would be trade around $500 to $600 per share. That’s a 40x to 50x from its current price range.
Final Words on Lucid Motors and MicroVision...
LCID and MVIS stocks are two of the best growth stocks you can buy right now. In 5 years, Lucid Motors and MicroVision will be the two best companies in the world and their shareholders will thank themselves for HOLDing (LCID and MVIS) shares through tough times.
Conclusion
LCID and MVIS are my top holding for a reason. If there are two stocks I absolutely love for their future potential right now, they are LCID and MVIS-- a match made in the autonomous land !!!